BREDA, Netherlands,
May 3 /PRNewswire-FirstCall/ --
Teleconnect, Inc. (OTCBB: TLCO) announced today that it has signed
a Letter of Intent to acquire 100% of Hollandsche Exploitatie
Maatschappij BV (HEM) in The
Netherlands. HEM, established in 2007, developed the very
effective age validation system 'Ageviewers.' The business of age
validation is at the core of Teleconnect's new strategic direction
and is expected to provide future growth. Both existing
subsidiaries of Teleconnect, Photowizz and Giga Matrix, will
fulfill an eminent function in the chain of supply of Teleconnect's
new service offering. The purchase of HEM is subject to due
diligence by Teleconnect as well as shareholders' approval.
Background
Alcohol consumption at too early an age has developed into a
global problem over this past decade. Adolescents drink too early,
too often and too much. High alcohol consumption at a young age can
leave scars impossible to remove. It can lead to acute intoxication
and causes irreparable damage to the young and developing brain.
Poor school results and disorderly conduct are problems associated
with drinking at too early an age. Moreover, it increases the
chance of developing alcohol-related problems at a later stage in
life.
The extent of the damage for society, either short or long term,
can hardly be accounted for any more. Effectively limiting the
availability of alcohol for adolescents by strictly enforcing legal
age limits has become a top priority in the health policies of most
developed countries.
Lock on alcohol
The general availability of alcohol is significantly enhanced by
a lack of consistency and the inherent inefficiencies to
traditional methods of age validation. With the Ageviewers system,
age checks are therefore no longer performed by cashiers, but
systematically and from a remote validation center. Without
authorization from the center, there is no way to register the sale
of a product requiring an age check. The approach has proved to
make it virtually impossible for minors to acquire alcohol or
tobacco.
The system does not confront adults with the burden of having to
show identification. Also, it introduces the possibility of 100%
age compliance for the sale of alcohol and tobacco products at self
scan checkouts.
Milestones
While completing the technical development and successfully
performing pilots in retail outlets, HEM in 2009 was awarded
subsidies by both the European Community and the Dutch Government
for the "social and technical innovation" demonstrated with the
Ageviewers solution. Also, an article highlighting the
effectiveness of the Ageviewers solution was published in the
Journal of Adolescent Health. Last January, the Dutch Minister of
Health revealed a report by the Dutch Consumer Product Safety
Authority, concluding the unique possibilities the system offers in
the enforcement of age limits. In March
2010, the Koninklijke SlijtersUnie, the royal Dutch
association of independent liquor stores representing over 500
outlets in the Netherlands,
announced the introduction of Ageviewers among their member
outlets.
Business Model
With the completion of the HEM acquisition, Teleconnect's future
business model will be based on four sources of income that
function complementary. These four sources are related to the
leasing of age validation equipment, the performance of age
validation transactions, the performance of market surveys and the
broadcasting of in-store commercial messages using age validation
equipment in between age checks.
President's Message
"We announced in early 2009 a drastic corporate restructuring of
Teleconnect, Inc. which we have now successfully completed. Our
telecommunications business was sold in order to eliminate non-core
cash draining activities. In this process, we significantly
improved our balance sheet. We foresaw the value of both existing
subsidiaries whilst investigating our new strategic direction. At
the same time, Teleconnect restored its status of "good
standing" with the regulatory authorities.
"Teleconnect, Inc. is now a clean and well-organized holding
company and we consider it ready to engage in new business. In
launching new business, we will demonstrate a sense of
sustainability: it is our objective to excel in Ecological,
Social and Governance (ESG) issues. The well being and health of
young people and prevention of problems like aggression, violence
and accidents are among those issues. Ageviewers creates a
healthier and safer society, safer working conditions for cashiers,
and it reduces the necessity and cost of law enforcement. It is
simply a unique and economically responsible answer to many urgent
demands.
"HEM is an early development stage company which makes it still
affordable. The access to the capital market provided by
Teleconnect enables HEM to pursue its global ambition. It is a
win-win situation.
"The execution of our strategy requires investment and careful
planning, and we are confident that in this way we will be able to
successfully pursue our objectives. For all investors with
mid- to long-term investment intentions, especially those
investors that choose a socially responsible point of view, a share
in Teleconnect, Inc. could very well be an attractive choice."
For more information on Hollandsche Exploitatie Maatschappij
BV please refer to www.hembreda.nl
For more information on Teleconnect Inc please refer to the
Over-the-Counter Bulletin Board (OTCBB) with trading symbol TLCO at
the following website: www.otcbb.com
Statements contained in this press release contain the
Company's, or its management's, expectations and assumptions
about future events, are forward-looking statements intended to be
covered by the safe harbour provisions of the Private Securities
Litigation Reform Act of 1995, and the results anticipated by any
or all of the forward-looking statements may not occur. In
addition, these statements are subject to risks and uncertainties
that could cause actual results to differ materially from those set
forth in, or implied by, these forward looking statements.
Factors that could affect those results include, but are not
limited to, those described in the Company's annual report on Form
10-K for the fiscal year ended September 30,
2009 as well as the Company's subsequent reports on Form
10-Q and Form 8-K, which have been, or will be, filed with the
Securities and Exchange Commission.
SOURCE Teleconnect, Inc.